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  2. A return is the change in price of an asset, investment, or project over time, which may be represented in terms of price change or percentage change. A positive return represents a profit, while a negative return marks a loss.
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    What is return on investment?Return on investment is a metric that investors often use to evaluate the profitability of an investment or to compare returns across a number of investments. It is expressed as a percentage.
    What is return on investment (ROI)?Return on Investment (ROI) is a performance measure used to evaluate the returns of an investment or to compare the relative efficiency of different investments. ROI measures the return of an investment relative to the cost of the investment. The Return on Investment (ROI) formula:
    What is a return on investment (ri)?ROI tries to directly measure the amount of return on a particular investment, relative to the investment’s cost. To calculate ROI, the benefit (or return) of an investment is divided by the cost of the investment. The result is expressed as a percentage or a ratio .
    Why is return on investment important?Return on investment helps investors to determine which investment opportunities are most preferable or attractive. For example, let us consider Investment A and Investment B, each with a cost of $100. These two investments are risk-free (cash flows are guaranteed) and the cash flows are $500 for Investment A and $400 for Investment B next year.
     
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